What is an FHA Funding Fee?

FHA Funding Fees and 203k Loans

The FHA funding fee is also called an upfront mortgage insurance premium, or UFMIP. It is equal to 2.25% of your mortgage amount, and must be paid at the time of closing on your loan. However, it does not have to be paid out of pocket. Borrowers can roll the FHA funding fee into the loan amount if they so desire, although this may not always be advisable.

If you’d like to learn more about FHA 203k loans, simply fill out the form below and a friendly FHA home loan specialist will get in touch!